The High Court Commercial Division in Kampala has ordered businessman Andrew Kananura to pay over Shs140 million Vehicle and Equipment Leasing (U) Ltd after resolving a long-running dispute over the sale of motor vehicles and unpaid parking fees.
In his Monday judgment, Justice Stephen Mubiru found that while both parties owed each other money arising from related transactions, the final balance after set-off was in favour of the vehicle leasing company.
The dispute arose from a commercial relationship that began in April 2019, when Vehicle and Equipment Leasing (U) Ltd leased premises at Plot 20-30 Sadler Way, Naguru in Kampala, from Kananura, who was operating Panamera Bar and Restaurant at the time.
Part of the premises was used by the company as a parking yard for imported vehicles awaiting sale.
Court records show that between 2019 and 2020, the defendant (Kananura) acquired five motor vehicles from the plaintiff (Vehicle and Equipment Leasing (U) Ltd) under various arrangements, some formal and others disputed.
The vehicles included a Toyota Hilux, a Nissan Hard Body pick-up, two Toyota Land Cruiser station wagons and a Volkswagen Amarok.
The plaintiff claimed Kananura defaulted on payments totaling Shs255 million, while the defendant denied liability and instead counterclaimed Shs284.3 million in accumulated parking fees, arguing that the plaintiff failed to pay agreed daily charges for vehicles parked at his premises.
In determining the case, Justice Mubiru examined whether the alleged debts were liquidated sums capable of set-off and whether the parties had proved their respective claims.
On the purchase of the vehicles, the court found that three of the transactions were supported by written sale agreements, which the defendant admitted.
However, two vehicles, the Toyota Land Cruiser UAZ 468 E and the Volkswagen Amarok UAW 554 F were acquired under disputed circumstances, with no signed agreements on price.
The judge noted significant inconsistencies in the defendant’s testimony.
‘By the defendant in his examination in chief denying having purchased the two vehicles, and yet under cross-examination admitting that he did, he significantly undermined his credibility,’ Justice Mubiru held.
Relying on valuation reports and the doctrine of quasi-contract, the court ruled that the defendant had unjustly benefited from taking possession of the vehicles without full payment.
‘When a quasi-contract is found, the court typically awards the plaintiff the ‘reasonable value’ of the goods provided,’ the judge stated.
Based on market valuations, the court accepted the plaintiff’s prices of Shs125 million for the Toyota Land Cruiser and Shs65 million for the Volkswagen Amarok.
After accounting for partial payments already made, the court found that Kananura owed the plaintiff Shs255 million for the vehicles.
On the counterclaim for parking fees, the court held that the defendant had proved part of his claim, particularly in relation to yard sale events and parking charges.
However, the judge faulted the plaintiff for failing to produce complete parking records, drawing an adverse inference against the company.
‘The rule of spoliation of evidence permits courts to impose sanctions, such as adverse inference, against the party responsible for the withholding or destruction of evidence,’ the judge said.
As a result, the court found that the plaintiff owed the defendant Shs114,113,000 in parking fees.
When the two sums were set off against each other, the court arrived at a net balance of Shs140,887,000 payable by the defendant to the plaintiff.
Justice Mubiru further awarded interest at 20 percent per annum from 14 October 2020, the date the suit was filed, until payment in full, citing the prolonged nature of the litigation.
‘I consider the award of interest at the rate of 20% per annum. adequate compensation for the plaintiff’s having been deprived of the use of this money,’ the judge ruled.
The defendant was also ordered to pay the costs of the suit.